Debt Review Transfers: What Happens to Your Process and Fees?
Many consumers hesitate to transfer to a new debt counsellor because they worry it will reset their debt review progress or cost them a fortune in double charges. To clear up this confusion, the National Credit Regulator (NCR) has outlined exactly how your files and fees must legally be handled during a transfer.
Will Transferring Restart the Debt Review Timeline?
The transition is legally designed to be a continuous, smooth process:
The 60-Day Window: The 60-business day period contemplated in section 86(10) of the NCA does not re-commence when you move to a new counsellor.
Seamless Continuation: Your debt review process simply continues directly from the last procedural step taken by your previous debt counsellor.
Understanding the Rules on Fees
The NCR has set very strict boundaries regarding what can be charged during a transfer to ensure consumers are not exploited:
No Double Charging: The receiving debt counsellor is prohibited from charging you a new application, administration, restructuring, or legal fee if you have already paid these fees to your original counsellor.
Mandatory Refunds: Any fees that were collected but not utilized by your initial debt counsellor must be fully refunded to you.
Settling Your Bill: On your part, you are required to pay all outstanding debt counselling fees for work factually completed up to the date of transfer before the transfer can take place.
Need Assistance with Your Debt Review or Credit Profile?
Knowing your rights under the National Credit Act is the first step toward true financial freedom. Whether you want to transfer your debt review to a trusted counsellor, require assistance with credit clearance, or want to understand your credit score better, the team at My Credit Repair is here to help.
Contact our expert team today for professional, legal, and hassle-free assistance:
